Segmentation, Targeting, and Positioning Multiple Choice Part 1

Chapter 06 - Segmentation, Targeting, and Positioning 3. A chainsaw company markets its products only in areas with forests. In this case, the segmentation approach used by the company is: A. geographic segmentation. B. benefit segmentation. C. demographic segmentation. D. behavioural segmentation. E. psychographic segmentation. Geographic segmentation organizes customers into groups on the basis of where they live. Hence, the chainsaw company is using geographic segmentation to segment its customers. Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 06-01 Describe the bases marketers use to segment a market. Topic: 06-03 Step 2: Segmentation Bases 4. A company makes packaged juices for the Canadian market, and different flavours are developed for specific regions. In this case, the segmentation approach used by the company is: A. geographic segmentation. B. benefit segmentation. C. demographic segmentation. D. occasion segmentation. E. psychographic segmentation. Geographic segmentation organizes customers into groups on the basis of where they live. Hence, the juice packaging company is using geographic segmentation to segment its customers. Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 06-01 Describe the bases marketers use to segment a market. Topic: 06-03 Step 2: Segmentation Bases 6-3 Chapter 06 - Segmentation, Targeting, and Positioning 5. A company develops a variety of exotic breads targeted at suburban areas where large families reside, and the demand for easy breakfast options is high. In this case, the segmentation approach used by the company is: A. geographic segmentation. B. behavioural segmentation. C. demographic segmentation. D. occasion segmentation. E. psychographic segmentation. Geographic segmentation organizes customers into groups on the basis of where they live. In the given scenario, the company is using geographic segmentation because it is targeting its customers on the basis of where they live. Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 06-01 Describe the bases marketers use to segment a market. Topic: 06-03 Step 2: Segmentation Bases 6. Jimmy's Own Inc. introduces different kinds of snacks for the Asian and European market. In the context of segmentation bases, this is an example of: A. geographic segmentation. B. benefit segmentation. C. demographic segmentation. D. loyalty segmentation. E. psychographic segmentation. Geographic segmentation organizes customers into groups on the basis of where they live. Jimmy's Own Inc. is using geographic segmentation when it introduces different flavours for different geographic locations. Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 06-01 Describe the bases marketers use to segment a market. Topic: 06-03 Step 2: Segmentation Bases 6-4 Chapter 06 - Segmentation, Targeting, and Positioning 7. Of the various methods for segmenting consumers, which of the following is the one that delves into how consumers describe themselves? A. Geographic segmentation B. Benefit segmentation C. Demographic segmentation D. Loyalty segmentation E. Psychographic segmentation Of the various methods for segmenting, or breaking down the market, psychographics is the one that delves into how consumers describe themselves. Psychographics allows people to describe themselves by using those characteristics that help them choose how they occupy their time (behaviour) and what underlying psychological reasons determine those choices. Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 06-01 Describe the bases marketers use to segment a market. Topic: 06-03 Step 2: Segmentation Bases 8. A new startup company decided to target Canadians between age of 18 and 35 who use iPhone mobile for their new application. Which segmentation base(s) does the company use? A. Demographic and behavioural segmentation B. Geographic, behavioural and psychographic segmentation C. Geographic and behavioural segmentation D. Behavioural, demographic, and geographic segmentation E. Psychographic, behavioural, and demographic segmentation The company is targeting Canadian (geographic), between age of 18 and 35 (demographic) who use iPhone (behavioural). Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 06-01 Describe the bases marketers use to segment a market. Topic: 06-03 Step 2: Segmentation Bases 6-5 Chapter 06 - Segmentation, Targeting, and Positioning 9. A company that sells bags launches a category of bags featuring children's favourite cartoon characters. It also launches a line of stylish travel bags for adults. In this case, the segmentation approach used by the company is: A. geographic segmentation. B. benefit segmentation. C. demographic segmentation. D. occasion segmentation. E. psychographic segmentation. Demographic segmentation groups consumers according to easily measured, objective characteristics such as age, gender, and income. Hence, when a company uses age as a factor to segment its customer base, it is using demographic segmentation. Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 06-01 Describe the bases marketers use to segment a market. Topic: 06-03 Step 2: Segmentation Bases 10. Demographic segmentation refers to the segmentation of consumers based on: A. the worth that consumers get from products or services. B. where the consumers live. C. how consumers describe themselves. D. the consumers' life goals. E. the consumers' age, gender, or education. Demographic segmentation groups consumers according to easily measured, objective characteristics such as age, gender, income, education, race, occupation, religion, marital status, family size, family life cycle, and home ownership. These variables represent the most common means to define segments because they are easy to identify. Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 06-01 Describe the bases marketers use to segment a market. Topic: 06-03 Step 2: Segmentation Bases 6-6 Chapter 06 - Segmentation, Targeting, and Positioning 11. A credit card company issues a special card only to those customers who spend more than $100,000 a year on its other cards. In this case, the segmentation approach used by the company is: A. geographic segmentation. B. benefit segmentation. C. occasion segmentation. D. demographic segmentation. E. behavioural segmentation. Behavioural segmentation groups the consumer based on their usage rate. IN this example, the company is targeting the heavy users of its other card to promote a new product. Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 06-01 Describe the bases marketers use to segment a market. Topic: 06-03 Step 2: Segmentation Bases 12. A sports goods manufacturing company has started creating marketing campaigns to specifically target the female market. In this case, the segmentation approach used by the company is: A. geographic segmentation. B. benefit segmentation. C. demographic segmentation. D. loyalty segmentation. E. psychographic segmentation. Demographic segmentation groups consumers according to easily measured, objective characteristics such as age, gender, income, and education. Hence, when the company creates marketing campaigns to specifically target the female market, it is using demographic segmentation to segment its consumers. Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 06-01 Describe the bases marketers use to segment a market. Topic: 06-03 Step 2: Segmentation Bases 6-7 Chapter 06 - Segmentation, Targeting, and Positioning 13. Skincare Inc., a company known for its women's skin-care products, starts offering skincare products specifically developed for single men, with income of 50k or more/year who live in large cities in the US and Canada. Which segmentation approach(es) used by the company? A. Geographic, demographic, and behavioural segmentation. B. Behavioural and demographic segmentation. C. Demographic and geographic segmentation. D. Demographic, benefit and geographic segmentation E. Psychographic and geographic. segmentation Demographics: marital status, gender, and income. Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 06-01 Describe the bases marketers use to segment a market. Topic: 06-03 Step 2: Segmentation Bases 14. A lifestyle store deals with expensive and aesthetic products. Most of its target customers belong to the elite class of society who want to make a style statement associated with exclusivity. In this case, the segmentation approach used by the store is: A. geographic segmentation. B. benefit segmentation. C. demographic segmentation. D. loyalty segmentation. E. psychographic segmentation. Psychographic segmentation segments people based on their lifestyle, personality, or social class. Hence, when the lifestyle store specifically targets the elite class of society, it is using psychographic segmentation. Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 06-01 Describe the bases marketers use to segment a market. Topic: 06-03 Step 2: Segmentation Bases 6-8 Chapter 06 - Segmentation, Targeting, and Positioning 15. An automobile ad is created in such a way that it appeals to people who value individuality. The company aims at grouping customers based on their personality characteristics. This is an example of: A. geographic segmentation. B. benefit segmentation. C. demographic segmentation. D. occasion segmentation. E. psychographic segmentation. Psychographic segmentation segments people based on their self-concept or personality. Hence, when the automobile ad targets people who value individuality, it is using psychographic segmentation. Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 06-01 Describe the bases marketers use to segment a market. Topic: 06-03 Step 2: Segmentation Bases 16. A furniture manufacturer deals in furniture with antique designs. The furniture mimics the designs used in royal households and provides customers with a means of self-expression. People who buy such furniture feel like they are part of a royal family. In this case, the segmentation approach used by the manufacturer is: A. geographic segmentation. B. behavioural segmentation. C. demographic segmentation. D. geodemographic segmentation. E. psychographic segmentation. Psychographic segmentation delves into how consumers describe themselves, and it allows people to describe themselves by using those characteristics. Hence, in the given scenario, the furniture manufacturer is using psychographic segmentation when it targets its customers based on their lifestyle preferences. Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 06-01 Describe the bases marketers use to segment a market. Topic: 06-03 Step 2: Segmentation Bases 6-9 Chapter 06 - Segmentation, Targeting, and Positioning 17. Goals for life, not just the goals one wants to accomplish in a day, are called: A. self-concepts. B. ideal points. C. self-values. D. lifestyles. E. self-morals. Self-values are life goals, not just the goals one wants to accomplish in a day. They refer to overriding desires that drive how a person lives his or her life. Examples of self-value goals might include self-respect, self-fulfillment, or a sense of belonging. Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 06-01 Describe the bases marketers use to segment a market. Topic: 06-03 Step 2: Segmentation Bases 18. Which of the following allows people to describe themselves by using those characteristics that help them choose how they occupy their time (behaviour) and what underlying psychological reasons determine those choices? A. Demographics B. Psychographics C. Geodemographics D. Chromodynamics E. Matronymics Psychographic segmentation delves into how consumers describe themselves, and it allows people to describe themselves by using those characteristics that help them choose how they occupy their time (behaviour) and what underlying psychological reasons determine those choices. Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 06-01 Describe the bases marketers use to segment a market. Topic: 06-03 Step 2: Segmentation Bases 6-10 Chapter 06 - Segmentation, Targeting, and Positioning 19. The image a person has of himself or herself is called: A. self-concept. B. ideal point. C. self-value. D. lifestyle. E. self-moral. Self-concept refers to the image people have of themselves. A person who has a goal to belong may see, or want to see, himself or herself as a fun-loving, gregarious type whom people wish to be around. Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 06-01 Describe the bases marketers use to segment a market. Topic: 06-03 Step 2: Segmentation Bases 20. An up-and-coming businessman buys a certain brand of apparel. This brand is associated with the image of an individual who values exclusivity and style, which is the kind of person the businessman would like to be. In the context of psychographic segmentation, the brand is appealing to the businessman's: A. self-concept. B. ideal point. C. positioning statement. D. perceptual map. E. self-morals. Self-concept refers to the image an individual has of himself or herself. A person who has a goal to belong may see, or want to see, himself or herself as a fun-loving, gregarious type whom people wish to be around. Hence, the brand is appealing to the businessman's selfconcept. Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 06-01 Describe the bases marketers use to segment a market. Topic: 06-03 Step 2: Segmentation Bases 6-11 Chapter 06 - Segmentation, Targeting, and Positioning 21. Self-respect, self-fulfillment, or a sense of belonging are typically examples of: A. perceptual maps. B. demographics. C. self-value goals. D. situational objectives. E. self-morals. Self-values are life goals, not just the goals one wants to accomplish in a day. They refer to overriding desires that drive how a person lives his or her life. Examples of self-value goals might include self-respect, self-fulfillment, or a sense of belonging. Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 06-01 Describe the bases marketers use to segment a market. Topic: 06-03 Step 2: Segmentation Bases 22. How we live our lives to achieve goals is called: A. self-concept. B. ideal point. C. self-value. D. lifestyle. E. self-morale. Lifestyles, the third component of people's psychographic makeup, are the ways we live. If values provide an end goal and self-concept is the way one sees oneself in the context of that goal, lifestyles are how we live our lives to achieve goals. Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 06-01 Describe the bases marketers use to segment a market. Topic: 06-03 Step 2: Segmentation Bases 6-12